July 2012 Rural Market Update
Keen Interest In Rural and Lifestyle Properties
Lifestyle and rural properties sold in Northland and Greater Auckland are experiencing similar gains in price and sales numbers to those being achieved within Auckland City.
“The value of lifestyle and rural properties we have sold in the past three months are up 20 percent compared to those for the same period last year, while the number of properties sold is up 10 percent,” said Wendy Alexander, Chief Executive Officer of Barfoot & Thompson.
“In the past six months we have sold 179 rural and lifestyle properties, with the monthly average of properties sold being $24.4 million."
“This is the highest average price in a six month period for the past four years.”
In Northland the focus has been on dairy and dry stock farms, with the price an hectare for dairy farms being around $19,000 and that for dry stock farms $10,000.
The price per hectare for medium hill country farms more suited to sheep and beef ranges from $5000 to $9000.
Closer to Auckland the emphasis is on smaller holdings and lifestyle blocks, with the interest in Kumeu, Helensville, Coatesville and Clevedon being much stronger than in the recent past.
“Banks are showing the same interest in lending to the rural market as they are to the residential market, and with interest rates being at historical lows, activity is high,” said Alexander.